Two German banks have jointly underwritten a loan for the Segro European Logistics Partnership (SELP).

Two German banks have jointly underwritten a loan for the Segro European Logistics Partnership (SELP).

pbb Deutsche Pfandbriefbank and Helaba have jointly underwritten a €188 mln five-year secured facility for SELP, a joint venture set up by UK REIT Segro and Canadian pension fund, Public Sector Pension Investment Board PSP Investments), for its acquisition of the seed assets in Poland and Czech Republic.

The bulk - or €166 mln - will be used for the acquisition of the seed assets and adjacent land bank while €22 mln is available to refinance future properties. The transaction closed on 11 October. pbb and Helaba are acting as joint lead arrangers with pbb acting as facility agent and security agent.

The seed portfolio consists of 10 stabilised grade A logistics estates from Segro's portfolio, nine in Poland and one in the Czech Republic. It also comprises 520,000 m2 of adjacent development land located in Poland providing potential to build out further logistics space.

SELP was set up earlier this year to create a leading Continental European logistics platform. SELP's overall portfolio consists of 34 logistics properties, with an aggregate floor space of some 1.6 million m2. Poland accounts for 38% of the portfolio, followed by France (36%), Germany (13%), Belgium/Netherlands (9%), and the Czech Republic (4%). The portfolio is valued at around €1 bn.

Justin Read, group finance director at Segro, said he was 'delighted' to have begun a relationship with pbb and Helaba. 'We are looking forward to the opportunity of continuing to develop this in the future as we grow the SELP
venture.'

Segro ranked 60th in PropertyEU's Top Investors survey with assets under management of €6.5 bn at end-2012. A digital version of Top Investors 2013 with a profile of the company, the full ranking and related articles is available for premium subscribers at the link below.